
Right-left: NSSF Board Chairman, Patrick Kaberenge, Hon. Matia Kasaija, and NSSF Managing Director Richard Byarugaba breaking the ground for the construction of Lubowa Housing Project as one of the contractors looks on.
By Juliet Hildah Namulundu.
Kampala- Uganda: The National Social Security Fund (NSSF) has today 26th September, 2017 commissioned the construction of the 2,740 unit housing project in Lubowa, Wakiso district, in an effort to expand its investment portfolio and give its members competitive returns on their savings.
The real estate project which will cost an estimated USD 400 million over a 10-year period will be developed on the Fund’s 565 acres of land along Entebbe road and will be one of the most upmarket housing estates in Uganda. This project will be the first of its kind in Uganda.
Speaking at the ground breaking ceremony today, Richard Byarugaba, NSSF Managing Director said that the Lubowa Housing Estate is in response to demand for quality housing for Uganda’s middle class as well as an investment opportunity that will deliver competitive returns on members’ savings.
Byarugaba said that the Fund will make an initial investment for phase 1 after which the project is expected to be self-financing with projection to complete the first phase in three years.
He also said that upon completion, the houses will be sold on an open market to both the fund members and the general public. However, priority will be given to the members at prevailing market rates at the time of completion.
The development will have retail and offices space, school, hospital, leisure and commercial areas, police and fire stations and places of worship, a central park and a Plantation Garden Park, creating a desirable environment for the residents. This project will be the first one of the kind in Uganda.
The Board Chairman, Patrick Byabakama Kaberenge said that the Fund’s real estate strategy going forward will focus on low cost housing which will target a significant number of NSSF savers.
He also added that the planned affordable housing projects include off taker projects in and around Kampala, 5,000 housing units projects at Temangalo, Wakiso and a planned estate in Nsimbe land which the fund recently redeemed back and acquired in totality.
Kaberenge also appealed to the Minister of Finance, Hon. Matia Kasaija to review and make some changes in the procurement bill which has a lot of bureaucracies that led to delay of procurement because this is one of the serious challenges faced by the fund in procuring assets.
Speaking at the same event, the chief guest Hon. Matia Kasaija, Minister of Finance commended NSSF upon the commencement of the landmark project and investing in a robust housing market which is in line with Government’s plan to provide decent housing for Ugandans.
He however challenged the NSSF to also focus on building decent houses for the low income earners especially those in the slums around Kampala city rather than focusing only on the middle class and high class people who are even less compared to the low class people. This will help in doing away with slums and give Kampala a better scenery being the capital city.
The fund’s other key real estate investment include the Ush 15.5 billion shillings, Mbuya housing projects, the 3.3 billion Jinja commercial complex in Jinja, the upcoming Mbarara commercial complex, Workers House, Social Security House and Pension Towers.
The fund which currently boosts of shs7.9 trillion in assets also increased its stake in power utility firm, Umeme, to 23 percent up from 15 percent by making an additional investment of about Shs59.4 billion and is also the largest institutional investor on the Uganda Securities Exchange.